BRAMSHOTT and Liphook Parish Council has been told it has been unnecessarily overcomplicating its budget and precept in the past.

Derek Kemp, from DCK Accounting Solutions, criticised the parish council’s policy of maintaining general reserves of five to six months’ net expenditure, and suggested three months reserves would be sufficient.

During his presentation at last month’s finance and policy committee meeting he advised councillors to have just one budget – letting the full council have the overview – and decide on capital projects proposed by each committee, as well as set up a rolling capital fund for that purpose as well as establishing their priorities.

Mr Kemp stressed the precept and budget was the place to provide money for capital spending – not the place to create capital spending – and when council approves a project, it is the officer’s authority to create a spending budget and show how it is funded.

He also made strong recommendations for councillors to develop a five-year business plan with estimated costings, setting out hopes and aspirations, rather than rely on past spending patterns to create a budget.

He warned a five-year business plan could take up to a year to develop, but once it was in place it would support all committees and proposed projects.

Councillors sought advice from Mr Kemp on possible future needs to borrow large sums of capital, which, he said – after first assessing the need and impact on the budget – would involve borrowing from the Public Works Loan Board (PWLB), a popular lender for parish councils, where interest rates do not fluctuate.

Last year, the parish council budgeted £35,000 for its costs towards the Neighbourhood Development Plan, which raised the precept by 13.65 per cent, causing widespread criticism in the village.

This year, an additional £15,000 has been included for the NDP to cover any fees due to independent consultants Feria Urbanism, as well as public events and other expert advice as required.

Currently, Liphook’s NDP has an underspend and total final costs are estimated at £77,000.

By adding an additional £15,000 to its budget for future contingencies it aims to future proof the plan.

Parish council chairman Jane Ives confirmed any money not required for the NDP would go back into reserves and used for other parish projects.

She has in the past pointed out a Neighbourhood Development Plan is a future investment for Bramshott and Liphook and will bring substantial amounts of money back into the parish, quoting Lowsley Farm’s phase two development of an additional 175 houses, which comes under the Community Infrastructure Levy (CIL).

Without a Neighbourhood Plan the parish council would only received 15 per cent from the CIL – with a plan in place it increases to 25 per cent, which is paid by developers when housing schemes are approved.

Mrs Ives revealed developer’s contributions at present are estimated at £179,000 towards open spaces and £99,000 towards transport, including platform improvements at Liphook railway station.

This year’s precept is proposed at £336,246 compared to £334,765 last year, she added, retaining taxpayers costs at the same level with a zero per cent increase.